Opponent Ends Campaign Against ‘Living Wage’ Rule

A leading opponent of a coastal zone “living wage” in Santa Monica has halted its involvement in a costly election campaign less than two weeks before the Nov. 7 election.

The Edward Thomas Cos., which operate the luxury oceanfront hotels Casa del Mar and Shutters on the Beach, has contributed more than $400,000 to the campaign for Proposition KK. The ballot initiative calls for a very narrow living wage that would apply to fewer than 200 workers of firms with city contracts. It would prevent the City Council from adopting a broader proposed living wage ordinance that would concentrate on beach area hotels, shops and restaurants.

The KK initiative was sponsored by Santa Monicans for a Living Wage. The group has raised nearly $1 million for mailers and phone efforts, nearly all of it from national hotel chains that own beachfront properties in Santa Monica.

Opponents of Proposition KK have run an intense grass-roots campaign warning voters that the initiative’s wording is deceptive and that its real effect would be to hurt a much larger number of low-income workers. The initiative would prohibit the council from any minimum wage actions, requiring such moves to be approved by voters.

In a letter to Santa Monica Mayor Ken Genser dated Oct. 25, Edward Thomas Cos. President Timothy S. Dubois said the company “has suspended campaign activities for Proposition KK” as of the first week of October. The letter went on to say, “It is our understanding that our industry allies have also taken this same step.”

However, a spokeswoman for Loews Hotels, another major contributor to the effort, said she was “under the impression” that Loews had not pulled out of the effort.

According to campaign statements filed Friday morning, backers of the initiative have raised $919,000 so far.

Opponents of Proposition KK took the Thomas Cos.’ move as a concession of defeat by the hotels. “We see this as a sign that they think they’re going to lose and they’re trying to cut their losses,” said Madeline Janis-Aparicio, of Santa Monicans Allied for Responsible Tourism. “It’s just amazing that with all their money, they haven’t found any local support.”

However, Jeff King, owner of Ocean Avenue Seafood restaurant named as a Proposition KK author, said he believed the hotel company suspended its involvement because “they got a commitment from some of the people on the City Council to sit down and see if this process can be a little less destructive than it has been.”

Thomas Cos. representatives did not respond to requests for comment.

The campaign has drawn national attention its outcome could help determine the future of the burgeoning living wage movement.

Dozens of cities across the country have passed laws that require city contractors to pay their workers above a minimum living wage. But the Santa Monica ordinance now under consideration by the city council would be the first to apply to a geographic area.